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Chargebacks and you

When processing transactions through your account you may experience a chargeback claim.

What is a chargeback?

A chargeback is a claim from a shopper’s card issuing bank to obtain funds that have been paid to you for a transaction to be credited back to the shopper.

The shopper’s bank will usually contact your merchant bank to notify them of the chargeback claim, your bank will then get in touch with you to notify you of the chargeback and any action they expect you to take to resolve this.

Why would I receive a chargeback?

Chargebacks can be raised for a number of reasons. Usually a chargeback request is raised by the shopper or their bank due to fraud, or a dispute with the business they have purchased from.

The most common causes of a chargeback are;

Fraud – The shopper has not made the purchase and their card details have been used without their permission.Dispute – The shopper and your business are in dispute over delivery, product, refunds, or any aspects of the order and they wish to have the funds returned to them.

You will always be notified by your bank that a chargeback has been requested, and given an opportunity to address this.

What happens next?

Once your bank has been informed about the chargeback request it will contact you to either credit the funds back to the shopper directly, or to challenge the chargeback claim.

You will then be given an opportunity to resolve the chargeback claim directly with your bank, or the shopper.

If the chargeback claim is successful your bank will debit the funds equal to the amount of the chargeback and credit them to the shopper.

Who is responsible for chargebacks?

Ultimately you are. We offer a number of fraud prevention tools that can be used to limit the amount of risk your company is exposed to.

If a chargeback claim is made against your business the responsibility of the chargeback lies with your business unless successfully challenged by your business.

We can help you protect your business against the risk of a chargeback, but we are not responsible for any claims made against your business.

How can I reduce the risk of a chargeback?

When you sign up for an account with us, you are given a number of fraud prevention tools as standard that can be used to reduce the amount of risk your company is exposed to, and in turn limit the risk of chargebacks.

They are;

3rd Man

Address, Post Code, and Card Security Code checks

3d Secure Authorisation

By using these tools you will be able to run your shoppers through fraud prevention during the transaction, and if they do not meet the requirements you have in place the transaction will be rejected.

Important

We aren’t involved in the chargeback process at any stage.

If you receive a chargeback you should resolve this directly with your merchant bank.